SAMS Group Australia
advertisement
SAMS Group Australia
advertisement
SAMS Group Australia
advertisement
Goto your account
Search Stories by: 
and/or
 

News












Tag Heuer
Tag Heuer

LVMH watch and jewellery profits trounce Bulgari

Tag Heuer owner LVMH has stormed ahead of luxury rival Bulgari with a strong first-half recovery in its watch and jewellery division.
Watch and jewellery profits at the luxury goods conglomerate, which also jointly owns the De Beers Diamond Jewellers retail operation, skyrocketed 145% to €49 million ($70.7 million). Revenues jumped 28 per cent to €443 million ($639.5 million) for the six months compared with the same period the previous year.

In a statement, LVMH said: “The increase in purchases by retailers, coupled with the rise in consumer demand, contributed to the performance of our brands.”

Tag Heuer – which celebrated its 150th anniversary this year – grew strongly in China, said the group.

LVMH’s total revenues jumped 16% to €9.1 billion ($13.14 billion), while total profit from recurring operations soared 33% to €1.8 billion ($2.60 billion).

The group said it expects to continue to gain market share thanks to further cost management initiatives and a number of product launches it has planned for the rest of the year.

BULGARI WATCH SALES LAG
Bulgari jewellery sales climbed 10.5 per cent to €202.5million ($292.3 million) in the first half of 2010, but watch sales were hit by calendar corrections that affected the reported figures.

Total sales rose 8 per cent to €443.3 million ($639.9 million) at comparable exchange rates on the back of positive growth in every product category except watches, sales of which fell 4.6 per cent to €88.2 million ($127.3 million).

However, Bulgari said the watch results were skewed by two factors: the fact that the 2009 results included sales of Roth and Genta brand watches, which were no longer stocked in the comparable period in 2010; and because sales of the watches exhibited at Basel in 2009 were delivered in the second quarter that year, whereas in 2010 these sales will fall in the third quarter.

Stripping out these factors, watch sales leapt 14 per cent in the first half of 2010 according to Bulgari.

The Italian luxury goods company achieved an operating profit of €12.3 million ($17.8 million) compared with a loss of €32 million ($46.2 million) in the first half of the previous year.

Bulgari narrowed its net loss to €7.7 million ($11.1 million), against €40.5 million ($58.5 million) for the same period in 2009.

Sales in the US rocketed 52.7 per cent, as the country continued its recovery from recession. Meanwhile, Bulgari reported that sales in Asia, excluding Japan, were “still growing briskly” – up 21.4 per cent – thanks to strong growth in China, where sales jumped 29.7 per cent. In Japan, sales fell 4 per cent.

Sales in Europe grew by 1 per cent, with Italy up 2.7 per cent, which Bulgari attributed to “a resumption of tourist flows”. However, sales fell 5.1 per cent in the territory that comprises the Middle East and “other” regions. This result was a combination of 6.1 per cent growth in the Middle East, and a decline in the rest of the world.

Bulgari Group chief executive Francesco Trapani said the results were in line with the company’s forecasts and that he was confident of meeting “mid-single digit” growth guidance for the full year.

Trapani added that the performance was a testament to the company’s cost containment strategy and “investment in our creativity and in the growth opportunities offered by the market”.

Following the release of Bulgari’s results, Reuters reported that the luxury company’s shares dropped 4.6 per cent on the back of a weaker performance than LVMH.

BULGARI TAPS INTO IPHONE GENERATION
Bulgari has launched a jewellery iPhone application to tap into the increasing move towards social marketing, following rivals such as Tiffany & Co.

The application has been built to showcase the brand’s B.zero1 collection, which includes a special edition ring designed by internationally acclaimed sculptor Anish Kapoor.

It allows shoppers to scroll through images of the jewellery and send them to friends via email or share them using Facebook or Twitter.

Bulgari has also included a function that allows users to “mirrorize” their friends – enabling them to take pictures and share them using social media.

Related stories:
The future of jewellery shopping?

Image Gallery (3 Images)









Rapid Casting
advertisement





Read current issue

login to my account
Username: Password:
SAMS Group Australia
advertisement
Jeweller Magazine
advertisement
SAMS Group Australia
advertisement
© 2024 Befindan Media